Series 7 Exam Question 392: Answer and Explanation

Question: 392

A customer wants their registered representative to purchase a security that is incompatible with their investment objectives. What action should the registered representative take under FINRA rules?

• A. Enter the order and note that it was unsolicited.
• B. Enter the order only if the customer puts their request in writing.
• C. Obtain the approval of the firm's compliance officer before entering the order.
• D. The registered representative cannot enter the order.

Correct Answer: A

Explanation:

A. Under FINRA rules, the representative should execute the trade in accordance with the customer's request and note on the trade ticket that the order was unsolicited.